Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Affiliated Managers Group (AMG) Sells $460M of Convertible Senior Notes

Affiliated Managers Group, based in Boston, Massachusetts, is a diversified asset management company with approximately $254B in assets. The company’s strategy is in generating growth through the internal growth of its existing affiliates, as well as through investments in new affiliates. Through the company’s innovative partnership approach, individual members of each affiliate’s management team retain or receive significant direct equity ownership in their firm while maintaining operating autonomy.

Affiliated announced this month that it has sold $460M of convertible senior notes that were due 2038. As part of the transaction, the initial purchasers exercised an option to purchase up to an additional $60M principal amount of notes to cover over-allotments. The securities carry a coupon of 3.95% per annum and a conversion price of $125.65, a 40% premium over Affiliated’s closing stock price of $89.75 on July 29, 2008.

Upon conversion, at the company’s election, the notes may be settled in cash, shares of Affiliated common stock or a combination of both. Affiliated may redeem the notes at its option beginning August 2013, and holders will have the right to require Affiliated to repurchase their notes on specified dates or upon the occurrence of a fundamental change. The offering was made to qualified institutional buyers only.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *